KATHMANDU, July 18: Nepal Rastra Bank (NRB) has introduced the facility of loan rescheduling and restructuring for construction entrepreneurs.
Amending the unified directives, the NRB has enforced this provision targeting to relieve construction entrepreneurs whose projects have been completed or are under construction but have yet to receive payment after ensuring resources from government agencies.
NRB issues circular on loan restructuring and rescheduling
At the request of the borrower, banks can reschedule or restructure the loan by recovering at least 10 percent of the interest payable based on the need and justification after analyzing the cash flow. Such rescheduling and restructuring should be done by the third quarter end of the current fiscal year.
Likewise, a minimum loan loss provision of five percent should be maintained in the case of rescheduled or restructured loans. The directive, however, states that in the case of loans that have already been classified as non-performing, the classification and loss provision as per the previous provision should be maintained.
To avail this facility, the construction entrepreneur will have to submit official documents showing that payment has been received from the concerned public authority.
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